DHX Media reports huge profit increase

An Inspector Gadget cutout stands in the lobby of the DHX Media animation studio in Halifax last year, after renovations. (TIM KROCHAK / Staff / File)

DHX Media Ltd. of Halifax reported a $18.03-million profit for the third quarter of fiscal 2015, along with gains in other areas.

But there’s still no word on the status of its Nova Scotia operations.

The entertainment company, with a long line of children’s animated and family programming, including shows like Teletubbies, Slugterra and Degrassi, said it saw a 902 per cent profit increase, up from $1.8 million over the same quarter in 2014.

The firm also reported revenue of $85.58 million this quarter, up from $29.03 million, or a gain of 195 per cent for the third quarter of fiscal 2014.

Michael Donovan, founder and executive chairman of DHX Media, called it the firm’s “best-ever quarter” in a conference call with financial analysts and media Thursday.

“Today’s numbers are a testament to the integrated platform and world-leading library we’ve built.”

The company saw a 153 per cent in proprietary production revenues at $15.05 million for the quarter over the same period last year, while distribution revenues were up 210 per cent to $30.48 million from the third-quarter of fiscal 2014. This was mainly due to the growth of new digital customers, platforms and territories, which exceeded management’s expectations, the company reported.

The acquisition of DHX Television in July 2014 accounted for $20.41 million, or 70 per cent, of the growth.

This double-and triple-digit growth translated into record revenues and a jump in earnings per share, amounting to basic earnings per common share of 15 cents and diluted earnings per common share for the third quarter of fiscal 2015, up from two cents in the third quarter of fiscal 2014.

Keith Abriel, the firm’s chief financial officer, said the company’s continued performance led to “an increase in the outlook for fiscal 2015,” with projected revenues in the range of $154 million to $166 million.

In addition to the results released Thursday morning, the firm’s board if directors approved a dividend for the quarter of 1.4 cents on each common voting share and each variable voting share for those with shares at the close of business on May 29, to be paid June 19.

DHX class A shares closed at 9.39, up 91 cents, on the Toronto Stock Exchange on Thursday, while DHX class B shares closed at $9.40, up 90 cents.

The company has offices in Toronto, Vancouver, Los Angeles, London, Paris, Barcelona, Milan, Munich, Amsterdam and Halifax, although the fate of its Nova Scotia base is still unknown.

The company didn’t respond to questions from The Chronicle Herald on Thursday — and hasn’t all week — about whether it is planning to remain in Nova Scotia.

David Regan, an executive vice-president with DHX Media, previously said the company would pull out of Halifax if controversial changes to the provincial film tax credit announced in the April 9 provincial budget were not amended.

After protests and meetings with industry, the province created a new stream within the digital media tax credit modelled on systems in Ontario and British Columbia to support the local animation industry.

The changes come into effect July 1 and were welcomed by Halifax animation firm Copernicus Studios Inc. DHX Media, however, has remained silent.